Health plans under Obamacare will be more affordable for young Americans. There has been a lot of debate over whether previously uninsured young Americans (ages 18-34) will purchase a health plan for themselves once Obamacare kicks in. If they’re relatively healthy and never go to the doctor, and they aren’t making much money, why should they spend what little money they have on health insurance?
What many young adults don’t know is that government subsidies will help them pay for their healthcare. For example, “…a 25-year-old waiter who lives in North Los Angeles and earns $17,200 a year will be able to purchase coverage from one of the state’s highest-rated insurers, Kaiser Permanente, for just $33 a month.” – healthinsurance.org
With the help of subsidies, many young people will be able to purchase coverage from one of the four excellent plans that offer free preventative care and include the 10 essential benefits. The 4 tiers of insurance will be Platinum, Gold, Silver, and Bronze. Monthly premiums for the
Platinum plan will be higher, but the co-pays and deductibles will be lower. And the premiums for the Bronze plan will be lower, but the co-pays and deductibles will be higher.
Which one should you choose? Discussing your needs and financial situation with one of our agents at Fortier Insurance can help you decide which plan might be right for you. We can also tell you whether you’re eligible for a subsidy. According to Linda Blumberg, a health policy analyst at the bipartisan Urban Institute, 96% of young adults, age 21-27, will qualify for
If you rarely visit a doctor and you’re not concerned with higher co-pays and deductibles, then the Bronze plan may be the more appropriate choice for you. If, however, you suffer from a chronic illness, like diabetes or asthma, and ER and doctor visits are more frequent, the Silver plan might be better.
Two important things to remember are: If you earn less than $15,282 (or 133% of the Federal Poverty Level), you will not be expected to spend more than 2% of your income when purchasing a health plan. And second, come 2016, the annual penalty for not having health insurance will have increased to $695.